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Link REIT selling 12 Hong Kong malls to Gaw Capital-led consortium for HK$12.01B

Link Real Estate Investment Trust, through its Link Properties Ltd. special-purpose vehicle, agreed to sell 12 shopping centers in Hong Kong to a consortium led by Gaw Capital Partners for a total consideration of approximately HK$12.01 billion.

Goldman Sachs Group Inc. and Blackstone Group LP, which were earlier reported as looking to buy upward of 10 of the real estate investment trust's shopping centers under an over HK$10 billion deal, are also part of the group acquiring the portfolio that features 1.1 million square feet of retail space and more than 4,700 parking spaces, according to a Dec. 12 report by Mingtiandi.

Link REIT said in a news release that the purchase consideration for the deal represents a roughly 32.1% premium over the nearly HK$9.09 billion combined appraised value of the properties being sold, as of Sept. 30.

The selling trust is expecting to yield about HK$2.79 billion from the divestment, which is anticipated to close March 13, 2019. Link REIT's manager, Link Asset Management Ltd., is planning to use the expected net proceeds for new investments and for general corporate expenditures, including, but not limited to, debt repayment and unit buybacks.

Link Asset Management appointed The Hongkong and Shanghai Banking Corp. Ltd. as its financial adviser and Cushman & Wakefield (HK) Ltd. as its real estate adviser in relation to the portfolio review and property disposals.